spus (Interest rate swap, 2 of mpany A wants to finance a $100,000,000 project at a ford rate for 5 years. Company B wa once a $100,000,000 project at a floating rate for 5 years. Their external borrowing opports are given below. Assume a swap bank is quoting five-year dollar Interest rate swaps at 5.8.9.0 percent against LIBOR flat. What is the value of this swap to Company A? Credit Rating Fixed-Rate Borrowing Cost Floating Rate Borrowing Cost Company A A 10.3%6 LIBOR+1% Company B AA 8.9% LIBOR+0.5% Company A will save 30 basis points per year on $100,000,000 - $300,000 per year. Company A will lose money on the deal. O Company A will only break even on the deal. Company A will save 10 basis points per year on $100,000,000 - $10,000 per year, Company A will save 3 basis points per year on $100,000,000 - $30,000 per year